greek or uk mortgage for construction of greek villa?

[ganesh]

I've tried to find out without asking brokers and financial companies whether a greek mortgage would be better than a uk one on a villa we are about to build in greece, I can't find out any comparison interest rates sites so don't know which would be cheapest or easiest.
We will be renting it out for holiday rental until we retire in several years time. Any ideas?

[buildersmate]

Euro mortgages are broadly tied to the base rates set by the European Central Bank. So mortage rates of between 2.5 - 3% may be possible just now.
But the repayments are in Euros, so you need to think about whether you believe the value of the pound is going to change against the Euro.
So there's no such thing as working out the 'cheapest' over a period of time. Its your guess.

[ganesh]

Yes,and every time you convert money for repayments you are charged,and although my guess is that the pound will return to a better rate ,you would be worried all the time about the exchange rate. Do most english companies lend for foreign builds?Thanks b.

[buildersmate]

Don't know, but I wouldn't have thought so. No way of assuring the loan security against the property in a foreign country. See what others have to say about it.
Why not borrow against an existing property you might have in the UK?

[ganesh]

Yes,that may probably be the answer,I may check with our exisisting lender-we haven't finished paying for this one yet,but it may be enough.

[buildersmate]

It doesn't matter.
What matters is the amount of extra borrowing you want and hence what percentage of the current value of the property would be mortgage - more than 70% and it probably won't fly. Plus your ability to show earnings that would enable you to repay the bigger loan.

[jtcrackers]

Why do you not consult a mortgage broker - not all charge fees - I work for one who does not. Ask your friends/ relatives/ workmates to reccomend one.